Happy time Holidays is a company that owns 400 small holiday homes for families and small groups and employs a caretaker in the immediate locality to clean and maintain each of the homes. The caretakers are required to complete a report after the end of each holiday indicating that they have completed all the necessary tasks as dictated by Happy time Holidays to ensure that the home is well maintained. The Head Office is based in London, and properties (homes) are recommended for purchase and sale by the Area Managers, of which there are currently twenty. The Area Manager is responsible for one or a number of areas (depending on size) and chooses appropriate properties, which satisfy the company's criteria. If properties prove to be unpopular with customers then following an investigation by the Area Manager they will be sold. However, all property purchases and sales also need to be authorized by another Area Manager.

The non-current asset register is maintained at Head Office within the Accounts Department and any changes to the register will be advised to the Accounts Department by the Area Managers. An extract from the financial statements is shown below. Properties are currently valued at market value in the financial statements; this value is ascertained by the Assistant Finance Director who reviews local newspaper property pages and then decides on the current valuation that he thinks is appropriate.

You are a new Audit Manager who has recently commenced employment with Leander & Laup, a large firm of accountants, and have been given responsibility for managing the audit of Happy time Holidays.

What are the internal controls that you would expect to be present in the non-current assets system ? Explain.